Page 3 - Spring 2015

ASKthe expert
taxes in that situation. Residents of housing units exempt from taxes get no credit. There are special rules for co-ops, assisted living facilities, and mobile homes.
My heat is included in my rent. Can I still get a home heating credit?
The income limits for the home heating credit are low; for example, $12,842 for a person with no or one exemption, but are increased for additional exemptions, such as for dependents. The credit only goes to
a person on the lease or owning the home. If the heat is included in rent or is in someone else’s name, there can be a credit available. It will be half of the credit available to someone being billed for the heat cost. It’s important to note that if someone is being billed for heat, they can only get a credit if they are on the lease or an owner of the home.
Please note that in all Michigan homestead property tax credit and home heating credit situations, the actual credit you might receive depends on several factors including the amount of total household resources. There are additional calculations and technical rules that apply to all of the above credits. It’s a good idea to check out your individual situation each year.
Accounting Aid Society is available to assist taxpayers in Wayne, Oakland,
Macomb, and Livingston Counties with household incomes of up to $35,000 for single individuals and $53,000 for families. Please contact us at 313-556-1920 or visit www.accountingaidsociety for more information.
After 34 years of experience in tax administration at the IRS, Marshall Hunt joined the staff of the Accounting Aid Society in Detroit, Michigan in April, 2001. He serves as Director of Tax Policy and Advocacy and Director of the Low Income Taxpayer Clinic. Before joining the staff, Marshall was a volunteer with Accounting Aid Society for 20 years, including nine years on the board of directors.
Answers to Five Common Tax Questions
By Marshall J. Hunt, CPA
Director of Tax Policy & Advocacy Accounting Aid Society
Here are answers to some typical tax questions I get asked during tax season.
I just turned 70 and was told I no longer have to file taxes. Is that correct?
There are no age requirements related to filing. Filing requirements are generally based on your gross income (income subject to tax) compared to your personal exemption and standard deduction. There are also special rules for self-employed taxpayers. Even if you are not required to file, you should file to obtain a refund of any withholding and any refundable credits.
You mentioned refundable credits. What are some especially important ones for seniors?
At the federal level for seniors still working, there’s the possibility of an earned income credit (EITC); although, for those without a qualifying child (or
grandchild) it’s not available after age 64. For residents of Michigan, besides the state EITC, there’s the homestead property tax credit and the home heating credit.
I’m a homeowner but have not paid my 2014 real property taxes. Can I still get a homestead property tax credit?
While taxes have to be paid to get a federal itemized deduction; the Michigan homestead property tax credit only requires that taxes have been levied, so you can get a credit if you otherwise meet the criteria. Your total household resources (basically income subject to tax and most non- taxable income except food assistance) must not exceed $50,000 and the taxable value of your homestead
must not exceed $135,000.
I’m a renter. Can I get a Michigan homestead property tax credit?
In most cases, 20 percent of rent you paid is considered to be for property taxes. However, there are special rules for housing units that pay service fees in lieu of taxes (also referred to as PILOT). Only 10% of rent counts as
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